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Volata Company began operations on January 1 , 2 0 2 3 . In the second quarter of 2 0 2 4 , it adopted

Volata Company began operations on January 1,2023. In the second quarter of 2024, it adopted the FIFO method of
inventory valuation. In the past, it used the LIFO method. The company's interim income statements as originally
reported under the LIFO method follow:
If the FIFO method had been used since the company began operations, cost of goods sold in each of the previous
quarters would have been as follows:
Sales for the second quarter of 2024 are $44,000, cost of goods sold under the FIFO method is $11,400, and operating
expenses are $5,800. The effective tax rate remains 25 percent. Volata Company has 1,000 shares of common stock
outstanding.
Required:
Prepare a schedule showing the calculation of net income and earnings per share that Volata reports for the three-
month period and the six-month period ended June 30,2023 and 2024.
Note: Round "Earnings per share" answers to 2 decimal places.If the FIFO method had been used since the company began operations, cost of goods sold in each of the previous quarters would have been as follows:
Accounts 20232024
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 1st Quarter
Cost of goods sold (FIFO) $ 6,200 $ 7,000 $ 7,600 $ 8,400 $ 9,800
Sales for the second quarter of 2024 are $44,000, cost of goods sold under the FIFO method is $11,400, and operating expenses are $5,800. The effective tax rate remains 25 percent. Volata Company has 1,000 shares of common stock outstanding.
Required:
Prepare a schedule showing the calculation of net income and earnings per share that Volata reports for the three-month period and the six-month period ended June 30,2023 and 2024.
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